8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    Form 8-K
                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934




                         Date of Report January 15, 1998
                        (Date of earliest event reported)


                               ALLIED Group, Inc.
             (Exact name of registrant as specified in its chapter)

             Iowa                      0-14243                    42-0958655
(State of other jurisdiction of      (Commission              (I.R.S. Employer
incorporation or organization)       Fine Number)            Identification No.)


701 Fifth Avenue, Des Moines, Iowa                                   50391-2000
(Address of principal executive offices)                             (Zip Code)


                                  515-280-4211
               (Registrant's telephone number including area code)



                 The total number of pages contained herein is 3.





                                       2




Item 5.  Other Events.

Attached hereto and  incorporated  herein is the press release dated January 15,
1998 which is filed as Exhibit 20.3 this Form 8-K.








Item 7.  Financial Statements and Exhibits.

(c)  Exhibits.

     20.3  Press release dated January 15, 1998






                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                       ALLIED Group, Inc.
                                          (Registrant)



                                /s/     Jamie H. Shaffer
                  ------------------------------------------------------------- 
                                  Jamie H. Shaffer, Treasurer
                  (Principal Financial Officer and Principal Accounting Officer)


Date:  January 15, 1998

EX-20

                                       3
                                                                    Exhibit 20.3

                         ALLIED GROUP, INC. ANNOUNCEMENT

Des Moines,  Iowa,  January 15, 1998 -- ALLIED  Group,  Inc.  (NYSE  symbol GRP)
announced today that a complaint has been filed by Mary M. Rieff, a policyholder
of ALLIED Mutual Insurance Company ("ALLIED Mutual"), in the Iowa District Court
in and for Polk County Iowa, against ALLIED Group, Inc.  ("Company") and certain
other individuals who are or were officers and/or directors of ALLIED Mutual and
the Company. The complaint asserts,  among other things, that (a) the defendants
were  responsible for the  inappropriate  transfer of ALLIED Mutual's  corporate
assets, the seizure of certain corporate opportunities and the implementation of
an  improper  de  facto   demutualization   without  informing  or  compensating
policyholders or receiving the appropriate approval from regulatory authorities;
(b) that this allegedly  wrongful  demutualization  began on or about January 1,
1985 and was  accomplished  through  transfers of ALLIED  Mutual's assets to the
Company and to the individual defendants for inadequate consideration;  (c) that
the  individual  defendants  breached  fiduciary  duties owed to ALLIED  Mutual,
wasted its corporate  assets and  intentionally  interfered  with its contracts,
prospective  business  advantage  and  business  relationships;   and  (d)  that
defendants improperly transferred  substantial ownership of and control over the
Company and ALLIED Mutual's  insurance  business.  The complaint further asserts
that as a result of the  foregoing,  ALLIED  Mutual and its  policyholders  have
suffered damages in excess of $500 million. The complaint requests an accounting
of the assets allegedly  wrongfully  transferred to the Company and compensation
to ALLIED  Mutual for the value of such  assets,  for the  seizure of  corporate
opportunities,  and for the de  facto  demutualization  of  ALLIED  Mutual.  The
complaint  also asks for certain  other  relief  including  attorneys'  fees and
costs,  equitable relief and interest and restitution for any assets  wrongfully
transferred or conveyed.

The Company  believes  that the suit is without  merit and intends to vigorously
defend this action.

                                   -- END --